Auto Insurance

What you need

and
Why you need it.
Auto Insurance
What is it:
Auto insurance protects you against
financial loss if you have an accident. It is
a contract between you and the insurance
company. You agree to pay the premium
and the insurance company agrees to pay
your losses as defined in your policy.
Auto Insurance
Auto insurance provides property, liability and
medical coverage:
 Property coverage pays for damage to or theft
of your car.
 Liability coverage pays for your legal
responsibility to others for bodily injury or
property damage.
 Medical coverage pays for the cost of treating
injuries, rehabilitation and sometimes lost
wages and funeral expenses.
Auto Insurance
Why do you need it?

 Teens have the highest involvement rates in all types of

crashes
 Many fatal teen crashes involve excessive speed or driving
too fast for existing road conditions
 77% of teen crashes involved avoidable driver errors
 Motor vehicle crashes are the leading cause of death for 15-
20 year olds, 10 teens lose their lives every day in car
crashes
 31,000 people were killed in crashes involving teens
between 1995 and 2004
 Since March 2003, 2,600 American troops were killed in
war-related accidents. In the same 41-month period, over
22,000 teens 15-19 died in car crashes throughout the U.S.
 Auto Insurance

Ohio’s Financial Responsibility Law

The law requires drivers to be
insured or have other arrangements
to pay for injuries or damages they
cause in the event of a crash. The
law provides protection against
irresponsible drivers.
Auto Insurance
The minimum amounts of liability
insurance that satisfy Ohio’s Financial
Responsibility Law:
 
 $12,500 for any one person killed or
injured in an accident caused by the
policyholder
 $25,000 as a total limit for all persons
killed or injured in an accident
 $7,500 for property damage caused in
the accident
Your Auto Insurance Policy
What will your policy cover?
1. Bodily Injury Liability
2. Medical Payments or Personal Injury
Protection (PIP)
3. Property Damage Liability
4. Collision
5. Comprehensive
6. Uninsured and Underinsured Motorist
Coverage
Your Auto Insurance Policy
 Bodily Injury Liability

This coverage applies to injuries that you, the

designated driver or policyholder, cause to
someone else. You and family members listed
on the policy are also covered when driving
someone else’s car with their permission.

It’s very important to have enough liability

insurance, because if you are involved in a
serious accident, you may be sued for a large
sum of money. Definitely consider buying more
than the state-required minimum to protect
assets such as your home and savings.
Your Auto Insurance Policy
Medical Payments or Personal Injury Protection (PIP)

This coverage pays for the treatment of injuries to the

driver and passengers of the policyholder's car. In
some cases, PIP can cover medical payments, lost
wages and the cost of replacing services normally
performed by someone injured in an auto accident. It
may also cover funeral costs.
Your Auto Insurance Policy
Property Damage Liability

This coverage pays for damage

you (or someone driving the car
with your permission) may
cause to someone else's
property. Usually, this means
damage to someone else’s car,
but it also includes damage to
lamp posts, telephone poles,
fences, buildings or other
structures your car hit.
Your Auto Insurance Policy
Collision
This coverage pays for damage to
your car resulting from a collision
with another car, object or as a
result of flipping over.
Collision coverage is generally sold
with a deductible of $250 to $1,000
—the higher your deductible, the
lower your premium.
Even if you are at fault for the
accident, your collision coverage will
reimburse you for the costs of
repairing your car, minus the
deductible.
Your Auto Insurance Policy
Comprehensive
This coverage reimburses you for loss due to theft or damage
caused by something other than a collision with another car or
object, such as fire, falling objects, missiles, explosion, earthquake,
windstorm, hail, flood, vandalism, riot, or contact with animals such
as birds or deer.
Comprehensive insurance is usually sold with a $100 to $300
deductible.

If you have a car loan, your lender may insist you carry it until your
loan is paid off.
Your Auto Insurance Policy
Uninsured and Underinsured Motorist
Coverage

This coverage will reimburse you, a member of

your family, or a designated driver if one of you
is hit by an uninsured or hit-and-run driver.
Underinsured motorist coverage comes into
play when an at-fault driver has insufficient
insurance to pay for your total loss. This
coverage will also protect you if you are hit as a
pedestrian.